U. S. stock markets slipped on Thursday, May 21, 2026, as rising oil prices and Treasury yields reignited investor concerns. The Dow Jones Industrial Average was down 0.5%, while the S&P 500 fell 0.4%. The tech-heavy Nasdaq Composite also declined by 0.4%. The Russell 2000, however, showed some resilience, gaining 2.56%.
Oil prices surged following a directive from Iran's Supreme Leader to keep enriched uranium within the country, escalating geopolitical tensions. West Texas Intermediate crude rose 2.31% to $100.50 per barrel, while Brent crude climbed 1.8% to $106.90 per barrel. These rising energy costs, coupled with increasing Treasury yields, added pressure to the broader market.
Nvidia (NVDA), a leader in the AI chip market, reported strong first-quarter results, exceeding analysts' expectations with revenue of $81.62 billion and adjusted earnings per share of $1.87. The company's guidance for the second quarter was also optimistic, projecting revenue of $91 billion. Despite these impressive figures, the market's reaction was lukewarm, with some analysts suggesting that investors were locking in profits after a significant run-up in Nvidia's stock price. The company also announced a 25x jump in quarterly dividends from $0.01 to $0.25.
Other factors influencing the market include Walmart's (WMT) nearly 2% share drop after issuing a weaker-than-expected full-year outlook, citing higher fuel costs related to the conflict in Iran. Conversely, Gates Industrial (GTES) surged 15.8% on optimism surrounding its acquisition of The Timken Company's (TKR) belts business. Overall, investors are closely monitoring geopolitical developments and macroeconomic indicators, balancing enthusiasm for AI growth with concerns about inflation and energy supply.
